Sell a Dental Practice

Timing is everything, even in Dentistry.

Your practice is a valuable asset and can augment your retirement plan. To sell your practice successfully, the best advice is: plan early so that you can control the end result. If a personal crisis such as divorce, disability, or an IRS judgment dictates the sale, the risk of lost revenue is far greater versus when the dentist has planned the when and how of the transaction.

Right now, it's a sellers' market!

Dental practices throughout the Northwest, including Washington, Oregon, and Idaho have been selling at a premium. This is a direct result of supply and demand. There are a number of reasons for this trend:

There are more graduates than retirees.

Interest rates have been low, and lenders are willing to loan money to dentists.

The Northwest is a desirable place to live! More and more young dentists are moving here to raise their families and live the good life.

Dentists who sell a practice now, or soon, are in a position to set the asking price. They can be in control of the sale of their life's work.

What will the future bring?

Several factors indicate that soon the tide will turn, and we will revert to a buyers' market:

The Baby Boomers are reaching retirement: an estimated 50,000 dentists will be retiring in the next 10 years.

Estimated 46,000 dentists will be graduating from dental school. Leaving a shortfall of 4000 new dentists.

Faced with the worst economy since the Depression and retirement plans losing 30-40% of their value in the last year or two, many dentists who expected to retire now are holding off until the economy recovers.

This new paradigm will mean buyers will be able to peruse through a multitude of dental practices for sale. Buyers will be able to choose from a larger number of options, putting the buyer in a position to dictate the sales price.

The future is not good for sellers unless they either transition sooner than later or put a long-term plan in place to prepare their dental practice for sale.